Agencies

WELLINGTON - New Zealand Prime Minister
Helen Clark announced Sunday that Israel had made a formal apology for
sending two agents into the country last year to try to obtain a false
passport.

Normal relations between the two countries, suspended
last July in retaliation for what New Zealand called an unfriendly act by
a friendly country, are being resumed immediately, Clark
said.

Israeli spies had fraudulently obtained a "very small number"
of New Zealand passports, Clark revealed Sunday.

She said it was
learned that passports had been obtained by people working on behalf of
Israeli intelligence during investigations into the arrest of two Mossad
secret service agents as they tried to get another one last
year.

The passports had been cancelled and "it would be futile for
attempts to be made to use them," Clark said.

The diplomatic rift
flared up in March 2004 when two Israelis, Eli Cara and Uri Kelman,
believed to be agents of the Mossad secret service, were arrested for
attempting to obtain a New Zealand passport by fraudulently stealing the
identify of a quadriplegic man.

They were convicted in July and
jailed for six months, but were released and deported in September after
making substantial charitable contributions.

The New Zealand
government suspended all high level contacts with Israel pending a formal
apology and barred President Moshe Katsav and Deputy Chief of Staff
Major-General Gabi Ashkenazi from making visits earlier this
year.

"The Israeli letter of apology, signed by Foreign Minister
Silvan Shalom, states that Israel apologizes for the involvement of its
two citizens in the activities which led to their arrest and convictions
in New Zealand," Clark said.

"It further states that Israel regrets
these activities and commits itself to taking steps to prevent a
recurrence of similar incidents in future."

She said New Zealand
agreed to resume full ties following the letter of apology after
consultations between the two governments carried out through diplomatic
channels over recent months.

A new Israeli ambassador to New
Zealand, whose accreditation had been held up by the dispute, will now be
welcomed and visits and other diplomatic activities can be restored, Clark
said.

She said the government had been strengthening the processes
used to issue passports for some time.

Commentators said New
Zealand passports had been sought by Israeli agents because it was seen as
a neutral country and holders of the documents could move easily over
international borders.